Calculator
Emergency Fund Calculator
An emergency fund is a pool of easily accessible cash that covers your essential expenses if your income stops — a job loss, a medical event, or an urgent repair. This calculator works out how large that fund should be based on your monthly expenses and the number of months you want to cover, then compares it against what you have already saved. It shows your target fund, the gap still to save, and how many months your current savings would actually last. Building this buffer first is what keeps a temporary setback from turning into long-term debt.
Rent, food, EMIs, utilities, insurance — what you must pay even with no income.
How many months of expenses you want the fund to cover. 3–6 is typical.
Cash you already hold for emergencies in a savings account or liquid fund.
Progress to your target fund
- Saved so far₹1,00,00042%
- Still to save₹1,40,00058%
Base the fund on essential expenses you cannot skip, not your full lifestyle spending. Keep it in instruments you can access within a day or two — a separate savings account, a sweep-in fixed deposit, or a liquid fund — not locked away or invested in equity where it could fall just when you need it.
What your result means
- Size the fund on essential expenses — rent, food, EMIs, utilities, insurance — not your total spending; the goal is to survive, not maintain luxuries.
- Keep it genuinely liquid (sweep-FD or liquid fund), never in equity — you need it most exactly when markets are down.
- If you dip into it, rebuilding the fund becomes your top financial priority before resuming extra investments.
How to use this calculator
- Enter your essential monthly expenses — the bills you must pay even if your income stops.
- Choose how many months of cover you want; 3 months for stable salaried income, 6 or more if your income is variable.
- Enter what you already hold for emergencies in accessible cash or liquid funds.
- Read the target and the gap still to save, plus how many months your current savings cover.
- Set up a monthly transfer towards the gap and treat the fund as off-limits except for genuine emergencies.
The formula
Target = Monthly essential expenses × Months of cover. Gap = max(0, Target − Current savings). Months currently covered = Current savings ÷ Monthly expenses. The gap is zero once your savings reach the target.
Worked example
With ₹40,000 of essential monthly expenses, a 6-month target and ₹1,00,000 already saved: target = ₹40,000 × 6 = ₹2,40,000. Gap = ₹2,40,000 − ₹1,00,000 = ₹1,40,000 still to save. Months currently covered = ₹1,00,000 ÷ ₹40,000 = 2.5 months. Saving ₹20,000 a month towards the gap would close it in seven months, taking you from a fragile 2.5-month cushion to a full half-year of security.
When to use it
- Deciding how big your emergency fund should be before you start investing aggressively.
- Checking whether your current cash buffer is dangerously thin after a big expense.
- Sizing a larger cushion if you are self-employed, on contract, or have a single income in the household.
- Setting a clear savings milestone to hit before taking on a new EMI or financial commitment.